Bank of Zhengzhou Co., a lender based in central China, and an existing investor are seeking as much as $717 million from a Hong Kong initial public offering.
Bank of Zhengzhou and the shareholder, China’s National Council for Social Security Fund, are offering 1.32 billion shares at HK$3.85 to HK$4.21 each, according to terms for the deal obtained by Bloomberg. Cornerstone investors have agreed to buy 838 million shares, or 63.5 percent of the offering, the terms show.
China’s city commercial banks are seeking to replenish capital to expand out of their home bases and compete with larger, better-funded rivals. Bank of Jinzhou Co. and Bank of Qingdao Co. completed IPOs worth a combined $1.4 billion in the past month, according to data compiled by Bloomberg.
Bank of Zhengzhou had 108 branches and sub-branches in seven cities in Henan province at the end of June, according to a pre-listing filing to the Hong Kong stock exchange. It aims to price the IPO on Dec. 16 and start trading on Dec. 23, the terms show.
Citic CLSA Securities and Bocom International Holdings Co. are joint sponsors of the listing.